Hopes for COVID-19 vaccines are driving oil prices higher and energy stocks are now on course to see the biggest quarterly gain since 1989
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Friday, December 18, 2020
Crude oil prices maintained their gains this week and went to new highs. In midday trading on Friday, Brent was above $ 52. Vaccination hopes are offset by bearish winds from the highest Covid-19 outbreak in the United States. Analysts are different about what will happen now, but some say oil has more room on the upside.
Investors turn bullish on North American oil. After being released for much of 2020, stocks for North American oil and gas producers have gone up in recent weeks. The Canadian Department of Energy’s Index is up 40% since Nov. 9, and U.S. energy stocks are experiencing their best quarter since 1989. Related: Mexico is quietly pushing out foreign oil investors
LNG prices skyrocket. JKM prices went up above $ 12 / MMBtu in the last few days. Intel Energy says a combination of factors is leading to an 80% rally in just three weeks. Supply disruptions in Australia, Qatar, and Norway, weather-related supply issues in the US, congestion at the Panama Canal, colder temperatures in the Northern Hemisphere,
Saudi cuts budget. Saudi Arabia has cut the 2021 budget by 7%, as it seeks to reduce the damage from oil revenues.
Hydrogen production to increase 5000% in 5 years. After decades of stagnation and multiple fake dances, the hydrogen economy seems to have started to take root. Industry experts point out that hydrogen could be a source of energy for trade around the world, just like oil and gas, while the Bank of America says the industry is in a state of decline and to be exploding into a $ 11 trillion market.
ExxonMobil updated to Buy by Goldman Sachs. Goldman Sachs updated ExxonMobil (NYSE: XOM) to Buy rating with a price target of $ 52, up from $ 42. The bank is seeing oil demand return and Exxon shares have already been knocked out.
MPs buy a stake in forest carbon mitigation. BP (NYSE: BP) they bought control in Finite Carbon, which helps landowners sell credits for their forests.
Strong demand for oil in Asia. The January-February Dubai distribution moved into support this month, due to strong demand for crude in India and China.
Prohibits drilling on federal land to cost $ 8.1 billion. A potential ban on drilling on the federal land of eight western states would cost up to $ 8.1 billion in tax revenue according to a study from the state of Wyoming.
Federal Reserve joins climate threat group. The U.S. Federal Reserve has teamed up with an international group of central banks – the Network of Central Banks and Managers for the Timing of the Financial System (NGFS) – an organization that uses regulatory control and research to reduce the risk impacts of climate change on the financial system.
EVs to reach price parity in three years. EVs could reach price equity with the internal combustion engine on an unsupported basis within the next three years, according to BloombergNEF. The main threshold can be reached when the cost of battery packs falls to an average of $ 100 per kilowatt-hour. The cost is now around $ 126.
Lloyd’s of London to put out fossil fuels by 2030. Lloyd’s of London, the world’s largest insurance market, said it would complete coal, oil sands, and Arctic energy exploration by 2022, and withdraw from the region as a whole by 2030.
The SEC approves an irrigated anti-corruption rule. The Securities and Exchange Commission agreed to a rule requiring oil, gas and mining companies to publish payments made to foreign governments, although the rule was severely weakened. Unlike previous statements, the new rule allows companies to distribute complete data at the country level, as opposed to contract by contract.
7 European energy majors agree on movement principles. Seven European energy companies – BP (NYSE: BP), Royal Dutch Shell (NYSE: RDS.A), Eni (NYSE: E), Equinor (NYSE: EQNR), Galp (FRA: DE), and Total (NYSE: TOT) – plus Occidental Petroleum (NYSE: OXY) agreed on six principles of energy transition: support the Paris Agreement, reduce emissions from activity, cooperate with stakeholders and investors, support zinc emissions and carbon sequestration, expose climate risk, and report information about membership of trade associations.
Trafigura denies bribery allegations in Brazil. Trafigura oil trader is on fire for alleged bribery in Brazil, a case stemming from the long-running Lava Jato investigation.
Related: Will Biden Seal The Fate Of US Shale Patch?
Canada bans North American ban on gasoline vehicles. The Canadian Minister of the Environment forged closer ties with the U.S. on environmental issues, including aligning vehicle policies that could lead America out of the internal combustion engine.
Biden energy and environment team. President Joe Biden unveiled several cabinet and sub-cabinet selections related to energy and the environment this week. Former EPA administrator Gina McCarthy will be Biden’s domestic climate czar. North Carolina environmental regulator Michael Regan will head the EPA. Representative Deb Haaland (D-NM) will be Secretary of the Interior. Former Michigan Governor Jennifer Granholm will lead the Department of Energy.
The oil industry needs $ 12.6 trillion in investment. The global oil industry will need about $ 12.6 trillion in investments through 2045, OPEC secretary general said at a video conference.
By Tom Kool for Oilprice.com
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